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Short or long term Commercial Leases, which one suits you?

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Working out whether a short or long lease term is best

for you depends upon which side of the fence (or lease)

you are sitting on.

There are pro's and con's for each alternative.

Are you the Tenant or

the Landlord?

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Disadvantages

• More complex negotiations

• Locked in

Landlord - Long Term

Advantages

• Stability

• Certainty

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Disadvantages

• More complex negotiations

• Increased maintenance and repair

costs

• Greater risk

Tenant - Long Term

Advantages

• Stability

• Certainty

• May offer tenant greater

negotiation power.

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A long term lease is typically five years or longer.

Offering stability and security, they’re favoured by

landlords and investors looking for a high return

on investment (ROI).

These arrangements work well for tenants who

need stability of location, predictable outgoings

and who may wish to negotiate concessions on

other lease terms.

Long Term leases

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Disadvantages

• Lack of security

• Lack of stability

Landlord - Short Term

Advantages

• Flexibility

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Disadvantages

• Moving costs

• Lack of security

• Lack of stability

Tenant - Short Term

Advantages

• Flexibility

• A bail-out option

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A short term lease is generally for a period of 5

years or less.

Perfect for landlords in a high demand area and

agile and flexible tenants. They are a great lower

risk option.

Beware - If you’re negotiating a retail lease check

the legislation as some Australian states stipulate

minimum terms.

Short Term leases

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Check out our range of professionally drafted

lease agreement kits for all Australian States.

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